2 Commencement

3 Interpretation

annual fee means, in relation to a casino operator, a class 4 operator, or a class 4 venue, a fee payable to enable recovery of any or all of the costs (relating to a 12-month period) referred to in section 370(1) of the Act

category A application means, in relation to an application for a class 4 operator’s licence or a class 4 venue licence, an application made by—

(a)

a club that the Secretary is satisfied intends to operate gambling equipment at a non-commercial class 4 venue that—

(i)

it owns or leases; and

(ii)

is mainly for the use of club members:

(b)

the New Zealand Racing Board:

(c)

a racing club

category B application means, in relation to an application for a class 4 operator’s licence or a class 4 venue licence, an application that is not a category A application

financial year means a period of 12 months beginning on 1 July and ending on 30 June in the following year

small club means a corporate society that—

(a)

is a club; and

(b)

operates not more than 7 gaming machines in total at the non-commercial class 4 venues that—

(i)

it owns or leases; and

(ii)

are mainly for the use of club members.

(2)

Unless the context otherwise requires, any term or expression that is defined in the Act and used, but not defined, in these regulations has the same meaning as in the Act.

4 Transitional, savings, and related provisions

The transitional, savings, and related provisions (if any) set out in Schedule 1 have effect according to their terms.

Payment of fees

5 Who must pay fees

The fees set out in Schedule 2 must be paid to the Secretary in accordance with regulation 6 by, as the case may be,—

6 Method of payment of fees

(a)

(b)

(c)

Fees relating to class 3 gambling

7 When fees payable

The class 3 fees set out in Part 1 of Schedule 2 must be paid at the time the relevant application is made.

Class 4 venue annual fee

8 When fee payable

(1)

A class 4 venue annual fee set out in Part 2 of Schedule 2 must be paid—

(a)

on notification to the applicant of the Secretary’s intention to grant a new licence (if the relevant licence is a new licence); or

(b)

on notification to the applicant of the Secretary’s intention to grant an amendment to the existing licence (if the relevant licence is to be amended); or

(c)

on the making of an application for renewal of the existing licence (if the relevant licence is to be renewed); or

(d)

on notification to the applicant of the Secretary’s intention to grant a renewal of the licence (if an additional fee is payable under regulation 9(3)﻿(a)).

(2)

If the period for which a class 4 venue licence is granted or renewed is longer than 12 months, a class 4 venue annual fee may be paid—

(a)

in accordance with subclause (1); or

(b)

with the Secretary’s approval, by instalment.

(3)

If payment is by instalment, the number of instalments, amount of each instalment, and due date for each instalment are to be determined by the Secretary.

9 Calculation of fee

(1)

The total class 4 venue annual fee payable by a licence holder for the period for which a licence is granted or renewed must be calculated by—

(a)

using the formula in subclause (2) to calculate the amount of fees for each full and part financial year for which the licence is valid; and

(b)

adding together the amounts calculated for each full and part financial year.

(2)

The formula referred to in subclause (1) is—

a × b × c

where—

a

is the number of whole months in any one financial year for which the licence is valid; and

b

is the relevant monthly rate of annual fee (specified in the fourth column of Part 2 of Schedule 2) for that financial year; and

c

is the number of gaming machines specified in the licence.

(3)

If a class 4 venue annual fee has been paid under regulation 8(1)﻿(c) and the fee payable for the period for which the licence is renewed differs from the amount paid (whether because the renewal of the licence is to be granted for a period other than 12 months, or for some other reason), the difference between the fee already paid and the fee calculated in accordance with this regulation—

(a)

is payable by the applicant (if a higher fee is payable than the fee already paid); or

(b)

may be refunded by the Secretary to the applicant (if a lower fee is payable than the fee already paid).

10 Additional fee payable if number of gaming machines increases

(1)

An additional amount of class 4 venue annual fee is payable if, during the term of a class 4 venue licence, the licence is amended to include additional gaming machines.

(2)

The amount of additional fee payable by the licence holder is the difference between—

(a)

the amount payable by the licence holder under the amended licence for the whole months for which the licence remains valid after the date of the amendment; and

(b)

the amount paid by the licence holder for the whole months for which the licence remains valid after the date of the amendment.

11 Refund of fee if number of gaming machines reduced

(1)

The Secretary may refund to the holder of a class 4 venue licence any class 4 venue annual fee paid by the holder if the licence has been amended to specify a number of gaming machines that is fewer than the number of gaming machines specified in the licence immediately before the amendment.

(2)

The amount the Secretary may refund is the difference between—

(a)

the amount paid by the licence holder for the whole months for which the licence remains valid after the date of the amendment; and

(b)

the amount payable by the licence holder under the amended licence for the whole months for which the licence remains valid after the date of the amendment.

12 Additional fee payable if licence holder ceases to be small club

(1)

An additional amount of class 4 venue annual fee is payable if, during the term of the class 4 venue licence, the licence holder ceases to be a small club.

(2)

The amount of additional fee payable by the licence holder is the difference between—

(a)

the amount payable by the licence holder as a corporate society other than a small club under the licence for the whole months for which the licence remains valid after the date on which the licence holder ceases to be a small club; and

(b)

the amount paid by the licence holder for the whole months for which the licence remains valid after the date on which the licence holder ceases to be a small club.

13 Refund of fee if licence holder becomes small club

(1)

The Secretary may refund to the holder of a class 4 venue licence any class 4 venue annual fee paid by the holder if, during the term of the licence, the licence holder becomes a small club.

(2)

The amount the Secretary may refund is the difference between—

(a)

the amount paid by the licence holder for the whole months for which the licence remains valid after the date on which the licence holder becomes a small club; and

(b)

the amount payable by the licence holder as a small club under the licence for the whole months for which the licence remains valid after the date on which the licence holder becomes a small club.

14 Refund of fee if class 4 licence surrendered

(1)

The Secretary may refund to a corporate society a class 4 venue annual fee paid by the society if the society has surrendered its relevant class 4 venue licence under section 79 of the Act.

(2)

The amount the Secretary may refund is the amount paid by the licence holder for the whole months for which the licence would have remained valid had it not been surrendered.

Class 4 operator’s annual fee

15 When fee payable

(1)

The class 4 operator’s annual fee set out in Part 3 of Schedule 2 must be paid—

(a)

on notification to the applicant of the Secretary’s intention to grant a new licence (if the relevant licence is a new licence); or

(b)

on notification to the applicant of the Secretary’s intention to grant an amendment to the existing licence (if the relevant licence is to be amended); or

(c)

on the making of an application for renewal of the existing licence (if the relevant licence is to be renewed); or

(d)

on notification to the applicant of the Secretary’s intention to grant a renewal of the licence (if an additional fee is payable under regulation 16(2)﻿(a)).

(2)

If the period for which a class 4 operator’s licence is granted or renewed is longer than 12 months, a class 4 operator’s annual fee may be paid—

(a)

in accordance with subclause (1); or

(b)

with the Secretary’s approval, by instalment.

(3)

If payment is by instalment, the number of instalments, amount of each instalment, and due date for each instalment are to be determined by the Secretary.

16 Calculation of fee if granted for period other than 12 months

(1)

If a class 4 operator’s licence is to be granted for a period other than 12 months, the class 4 operator’s annual fee payable must be calculated in accordance with the following formula:

(a ÷ 12) × b

where—

a

is the class 4 operator’s annual fee (specified in Part 3 of Schedule 2); and

b

is the number of months for which the class 4 operator’s licence is to be granted.

(2)

If a class 4 operator’s annual fee has been paid under regulation 15(1)﻿(c) and the renewal of the relevant licence is to be granted for a period other than 12 months, the difference between the fee already paid and the fee calculated in accordance with this regulation—

(a)

is payable by the applicant (if the licence is to be renewed for more than 12 months); or

(b)

may be refunded by the Secretary to the applicant (if the licence is to be renewed for less than 12 months).

17 Refund of fee if class 4 licence surrendered

(1)

The Secretary may refund to a corporate society a class 4 operator’s annual fee paid by the society if the society has surrendered its class 4 operator’s licence under section 63 of the Act.

(2)

The amount the Secretary may refund is the amount paid by the licence holder for the whole months for which the licence would have remained valid had it not been surrendered.

Other fees relating to class 4 gambling

18 When fees payable

(1)

The daily monitoring and licensing systems fees notified by the Secretary in accordance with regulation 19 and set out in Part 3 of Schedule 2 must be paid on or before the 20th day of each month.

(2)

All other fees set out in Part 3 of Schedule 2 must be paid at the time the relevant application is made.

19 Secretary to notify amount of monitoring and licensing systems fee

(1)

The Secretary must, as soon as practicable each month, issue an invoice to the holder of a class 4 operator’s licence for the monitoring and licensing systems fee payable for the previous month.

(2)

The monitoring and licensing system fee for each gaming machine connected to the electronic monitoring system is calculated in accordance with the following formula:

a × b

where—

a

is the number of days that the gaming machine operated in the month; and

b

is the daily monitoring and licensing systems fee per gaming machine (specified in Part 3 of Schedule 2).

(3)

In subclause (2), a gaming machine is operated if the electronic monitoring system records a change in the gaming machine’s electronic turnover meter.

Casino fees

20 When fees payable

(1)

The casino operator’s annual fee set out in subpart 2 of Part 4 of Schedule 2 must be paid in 4 equal instalments to be made on or before 20 July, 20 October, 20 January, and 20 April of the financial year in respect of which the fee is payable.

(2)

In the case of the instalment of a casino operator’s annual fee due on 20 April 2016 for the financial year beginning 1 July 2015,—

(a)

a casino operator must pay the instalment at the applicable rate set out in subpart 1 of Part 4 of Schedule 2; and

(b)

subclause (1) does not apply.

(3)

The other casino fees set out in Part 5 of Schedule 2 must be paid at the time the relevant application is made.

21 Penalty for late payment of casino operator’s annual fee

(1)

If an instalment payable in respect of a casino operator’s annual fee, or any part of that instalment, is not paid within 20 working days after the date for payment set out in regulation 20(1) or (2), a penalty of 5% of that unpaid instalment may be added to the amount due.

(2)

If the instalment remains unpaid at the end of the month following the month in which liability for the penalty first arose, or at the end of any subsequent month, a further penalty (of 5% of the unpaid instalment and any previous penalties) may be added to the amount due at the end of each of those months.

(3)

The casino operator must pay any penalty imposed under this regulation to the Secretary.

Notification under section 54 or 71 of the Act not related to key persons

169.00

Part 4 Casino operator’s annual fee

Subpart 1—Quarterly instalment due 20 April 2016

Matter in respect of which fee is payable

Quarterly instalment of fee due 20 April 2016 ($) (excluding GST)

Casino operator’s annual fee

Sky City Auckland Casino

713,000.00

Sky City Hamilton Casino

137,500.00

Christchurch Casino

203,250.00

Dunedin Casino

111,500.00

Sky City Queenstown Casino

76,000.00

Wharf Casino (Queenstown)

69,500.00

Subpart 2—Fees from 1 July 2016 onwards

Matter in respect of which fee is payable

Fee ($) (excluding GST)

Casino operator’s annual fee

Sky City Auckland Casino

2,852,000.00

Sky City Hamilton Casino

550,000.00

Christchurch Casino

813,000.00

Dunedin Casino

446,000.00

Sky City Queenstown Casino

304,000.00

Wharf Casino (Queenstown)

278,000.00

Part 5 Other fees relating to casinos

Matter in respect of which fee is payable

Fee ($) (excluding GST)

Applications for certificate of approval

New certificate (casino employee)

512.44

Applications for casino operator’s licence

New licence

302,222.22

Amendment to licence

888.89

Temporary authority

20,444.44

Applications for casino venue agreement approval

New agreement (including change of licensed operator)

20,444.44

Amendment to agreement

888.89

Amendment to casino venue licence

Amendment to licence

888.89

Applications for associated person approval

New approval

512.44

Part 6 Appeal fees

Matter in respect of which fee is payable

Fee ($) (excluding GST)

Appeals to Gambling Commission

Appeal filing

222.22

One-day hearing

400.00

Half-day and part half-day hearing (after first day)

400.00

Michael Webster,Clerk of the Executive Council.

Explanatory note

This note is not part of the regulations, but is intended to indicate their general effect.

These regulations, which come into force on 1 February 2016, specify the fees payable to the Secretary for Internal Affairs to enable the recovery of the direct and indirect costs of the Secretary, the Gambling Commission, and the Police arising from their duties and responsibilities under the Gambling Act 2003.

The principal changes from the revoked regulations include the following:

the structure of the new regulations groups together all of the regulations relating to particular types of fees; and

Schedule 2, which sets out the rates of the fees, is divided into 6 Parts based on types of fee; and

some of the application fees and annual fees are increased, while others remain the same or decrease; and

a fee for amendments to class 3 operator’s licences is removed; and

the application fees for a class 4 venue licence and a class 4 operator’s licence in the new regulations are flat fees that do not vary depending on the length of the term of the licence granted or renewed; and

the venue annual fee per gaming machine for class 4 licence holders will increase each financial year on 1 July, and calculations of this fee and any refunds or additional fees payable following amendments to licences take into account the annual increase to the rate of fee; and

there is to be a different rate of venue annual fee for class 4 licence holders that are small clubs as opposed to other corporate societies, and a corresponding definition of small club is included; and

the new regulations provide for a refund of the class 4 venue annual fee if a corporate society becomes a small club and for an additional payment of the fee if a corporate society ceases to be a small club during the period of its licence; and

the monitoring fee is renamed the daily monitoring and licensing systems fee; and

there is to be no change to the casino operator’s annual fee after the first 12-month period after the commencement of these regulations; and

the fees in the new regulations are exclusive of goods and services tax.

Regulatory impact statement

The Department of Internal Affairs produced a regulatory impact statement on 29 August 2015 to help inform the decisions taken by the Government relating to the contents of this instrument.